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Analysts spot a large influx of ether (ETH) to centralized cryptocurrency exchanges amid rising cryptocurrency prices
Weak hands began to actively unload their reserves every time ether (ETH) experiences a price pump. This is the conclusion reached by analysts at Santiment. It turned out that as ETH recovered above $ 4,000, investors began to withdraw cryptocurrency on exchanges.
As you can see in the chart above, the volume of ETH on centralized exchanges has exceeded 16.3 million ETH (~ $ 65.4 billion). Santiment analysts argue that the influx of cryptocurrencies into trading platforms correlates with surges in the price of ETH. This may indicate that the market is getting rid of short-term investors, experts say.
The fact that the crypto community does not expect big victories from the Ethereum ecosystem is also evidenced by social activity. For example, as you can see in the chart below, social volumes on ETH have largely remained in the neutral zone, despite the increased volatility of the cryptocurrency.
However, in Santiment they see a plus in the absence of excitement. They argue that social activity around cryptocurrencies rages, as a rule, as the price overheats. The higher the activity, the higher the risk of a price collapse. At the time of this writing, the price of ETH in the ETH / USD trading pair is $ 4047. The market capitalization of the cryptocurrency increased to $ 480.7 billion.
In early December, the editors reported that ETH exchange balances fell to a three-year low. The total amount of cryptocurrency on the balances of centralized cryptocurrency exchanges has dropped to 14 million ETH. Read about why Ripple decided to transport XRP onto the Ethereum rails, and how the cryptocurrency community reacted to it – read in the material of the BeInCrypto editorial staff.
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